1) Details of payments and provisions made to Chairman and Managing
 Director during the year
 
                    Year ended 31.03.2006  Year ended 31.03.2005
 L.K.TRIPATHYJ.A.S.,                  Rs.                    Rs.
 
 Salaries and Allowances          766,388               7,48,619
 
 Other benefits                     8,956                  9,838
 
 3) Value of imports (Calculated on C.I.F. basis) during the year ended
 are as follows:
 
                                                          (Rs. in Lakhs)
                           Year ended 31.03.2006   Year ended 31.03.2005
 
 1. Raw Materials                           6.57                    1.44
 
 2. Spare Pans                             17.02                   10.08
 
 3. Capital Goods                           0.00                   97.38
 
 (i) By-products (Weak sulphuric acid)
 
                          Year ended 31.03.2006    Year ended 31.03.2005
                                           M.T.                     M.T.
 
 1. Opening Stock                            18                       60
 
 2. Production                             1198                     1387
 
 3. Sales                                  1214                     1429
 
 4. Closing Stock                             2                       18
 
 (iii) Raw Material Consumption :
 
                               Current Year                Previous Year
                       Quantity       Value       Quantity         Value
                           M.T.     (Rs. in           M.T.       (Rs. in
                                     Lakhs)                       Lakhs)
 
 Chemicals Trades           250       41.19              -           Nil
 
 Chemicals                 6768     1180.98           8524       1370.89
 
 Acids                     1003       54.53           1176         63.69
 
 Paper & Film                27        7.11             39         10.19
 
 Coating Materials          117       56.76            124         63.03
 
 Metals                     300      315.33            369        351.88
 
 Yarn                        46       45.29             46         46.27
 
 Layflat                     79       72.51            107         98.49
 
 Others                       -       79.56              -         35.82
 
                              -     1853.26              -       2040.26
 
 (iv) Value of Raw Materials, Stores, Spares and Components Consumed
 (Rs. in Lakhs)
 
 Raw Materials                 Stores, Spares & Consumables
                 Year ended      Year ended    Year ended     Year ended
                 31.03.2006      31.03.2005    31.03.2006     31.03.2005
               Value      %    Value      %  Value      %  Value       %
 
 Imported     452.86  24.44    74.95   3.67  10.97   4.64  13.68    5.38
 
 Indigenous  1400.40  75.56  1965.31  96.33 225.41  95.36 240.62   94.62
 
 Total       1853.26 100.00  2040.26 100.00 236.38 100.00 254.30  100.00
 
 7) SEGMENT REPORTING
 
                                                         (Rs. in Lakhs.)
 Particulars           Year Ended 31.03.2006       Year Ended 31.03.2005
 
 1. Segment Revenue
 
 a) Explosives Division               1448.68                    1650.28
 
 b) Detonator & Fuse Division         1342.27                    1375.09
 
 c) Unallocated                        210.93                     221.91
 
 Total                                3001.88                    3247.28
 
 8) Payment to Auditors:
 
                           Year ended 31.03.2006   Year ended 31.03.2005
                                             Rs.                     Rs.
 
 Audit fee                                 33672                   33060
 
 Certification fee                         20938                   17080
 
 Tax Audit fee                             22040                   16530
 
 Expenses Reimbursed                        5824                    5248
 
 10) Provision has not been made in respect of the following interest
 charges.                                                 (Rs. in Lakhs)
                                           Unprovided         Unprovided
                                             interest           interest
                                         for the year    upto 31.03.2006
 
 1. Interest on Low interest Loan
 from Govt. of Tamil Nadu.                       6093              48881
 
                                              (54.77)           (427.88)
 
 2. Interest and penal interest
 in respect of `Ways & Means                   31. 02             187.47
 
 Advance  from Govt of Tamil Nadu              (2588)            (15645)
 
                                                91.95             676.28
 
                                              (80.65)           (584.33)
 
 11) Sundry Creditors include dues to the following SSI units
 outstanding for more than 30 days as determined by the available
 information on record:
 
 Abhaya Preceision Industries, Azide & allied chemicals, All India Tools
 Centre, Continental Packers, Chawra Plastics, Classic Computers,
 G.K.Engg. works, Janaki Wires, Kalyani Polymers, Lara Industries,
 Manjuvel Pulp Mfrs., Poongavanam Plastic Industries, Vasan Paper
 products, Industrial Yarn Processors, Industrial Plastics, Jay Jay
 Polymers, Prime Data Forms (I) P.Ltd., SMJS Powder Industries,
 Tamilnadu Timber mart and Vasan Splints Factory.
 
 12) The Central Government has banned the possession and use of
 Nitroglycerine explosives in India vide Gazette Notification No. GSR
 59(E), dt.21.01.2004. The Company has filed a case against the
 implementation of the above notification. However, the Company has
 stopped manufacture of NG based explosives w.e.f. 31.03.2004. Conse-
 quent to the above developments the following accounting measures have
 been adopted by the Company;
 
 i. AII the Plant and Machinery used in the manufacture of NG Explosives
 other than Nitro Glycerine Production unit have been put to alternate
 use and hence no change in the accounting for depreciation has been
 made in respect of these Plant and Machinery. The Company has taken
 steps and also requested Government of India for permission to
 manufacture Nitro Glycerine Explosives in view of Government of India
 permitting Private Explosives Manufacturer to manufacture certain types
 of N.G. Explosives. In view of the same, the Plant and Machinery in the
 Nitro Glycerine Production Unit have not been written off.
 
 ii. The Net Deferred Tax Assets recognized in compliance with AS-22
 relating to accounting for Taxes on Income upto 31-03-2004 was reviewed
 and written off during the year 2004-05. In view of the Company
 incurring losses continously for the years 2004-05 and 2005-06, there
 is no virtual certainity of taxable income in the near future. As such
 deferred tax asset or liabilitiy for the year 2005-06 have not been
 recognized.
 
 13) The Government of India imposed ban for possession, sale and use of
 NG Explosives with effect from
 
 01- 04-2004. Due to the ban, the Companys production and sale of
 explosives has been badly affected and has resulted in considerable
 loss. During 2003-04, to obviate this situation, the Company has
 introduced a range of Emulsion Explosives in the market and it is
 hopeful of increasing its market share in the years to come. Moreover,
 the company has entered into necessary agreements / MOD with a foreign
 explosives manufacturer for technology transfer for manufacture of an
 unique variety of explosive products for which a good market exists,
 besides a Joint Venture Agreement with the above manufacturer.
 
 In addition, the Company is in the process of (i) putting up a unit for
 manufacture of Mono Methyl Amine Nitrate based paper cartridged
 explosives and (ii) manufacture of a chemical 2-EHN utilizing the
 existing nitration facilities. In view of the above, the Companys
 accounts have been prepared on going concern basis.
 
 14) As required by Accounting Standard (AS 28)-lmpairment of Assets
 issued by the Institute of Chartered Accountants of India, the Company
 has carried out the assessment of impairment of assets. There has been
 no impairment loss during the year.
 
 15) Related Party disclosure - Key management personnel.
 
 Thiru L.K.Tripathy, IAS, Chairman and Managing Director-Remuneration
 Rs.7,75,344/- (Rs.7,58,457/-)
 
 16) During the current year the company has provided the liability on
 leave encashment on the basis of actuarial valuation in order to comply
 with AS 15 issued by the Institute of Chartered Accountants of India.
 Had the liability been provided on accrual basis as in last year, the
 loss would have been overstated by Rs.10,33,974/-
 
 17) The basic and diluted Earning per share is Nil
 
 18) Confirmation of balance in respect of some of the Sundry Debtors,
 Sundry Creditors and parties are yet to be received and reconciled.
 
 19) The estimated amount of contracts remaining to be executed on
 Capital account and not provided for is Rs. Nil (Rs.14,44,674/-)
 
 20) During the year, the company has spent Rs.38.57 (Rs.35.85) lakhs
 towards canteen expenses. Further Rs.6.81 (Rs.6.86) lakhs incurred by
 TEL Employees Co-operative Canteen Ltd. is provisionally accounted and
 is subject to Audit of their accounts under the Tamilnadu Co-operative
 Societies Act.
 
 21) The figures for the previous year are given in brackets and have
 been regrouped, reworked and recast to the extent necessary.